US hair care market expected to rebound and return to pre-recession levels

Over the five year period between 2006 and 2011 the US hair care market experienced a negative compound annual growth rate (CAGR) of 3 percent.

According to market researcher Companies & Markets, this was down to poor economic conditions leading consumers to trade down to less expensive products and generally cut back on discretionary expenditure.

Rebound expected​

However, the tide is turning for the US hair care market, as it is now forecast to rebound through to 2016, and is expected to increase at a CAGR of 1 percent in constant value terms, to be worth $10.5 billion.

Go back five years to 2007, and the total expenditure on hair care products per capita in the US stood at US$34.

By 2010, this figure had slipped to US$32, as consumers cut back on non-essential spending. Including inflation, per capita spending is anticipated to return to pre-recession levels by 2016.

Top dogs​

The Companies & Markets report states that L'Oréal USA and Procter & Gamble were the leading players within the US hair care market during 2011, controlling 24 percent and 22 percent value shares respectively.

Pantene (P&G) remained the single largest brand in hair care in 2011, owing to a diverse product mix and superior distribution in mass channels.

Within the lucrative shampoos category, P&G’s Head & Shoulders remained the leader, recapturing the leading position in 2008 and defending this share again in 2011, despite a 2 percent decline in value sales to $270 million.

Speaking of hair care…​

Hair colouring and dyes, hair loss and thickening, and a market overview will all be topics of the editorial webinars at the upcoming HairCare Ingredients 2012 – the industry’s first virtual hair care event taking place on September 19th 2012.

To register and find out more, click here​